FTSE 100 struggling to break resistance at 7410

The FTSE 100 continues to hold near the descending trendline off the June highs, but so far has shown little ability to break above it and take out the 7410 resistance level.

A failure to move above here raises the prospect of a return to 7300 and the vital support area that has held back any further losses since July. A daily close below this level is required to open the way to 7090.

DAX faces fresh selling

Since the beginning of the month pushes back to 12,300 have been met by fresh selling on the DAX. Yesterday’s bounce didn’t even get that far, and once again it was the downtrend off the June high that was the real catalyst for fresh selling.

The next levels to watch out for are 12,124 and then 12,032, and beyond that the August low at 11,923. A daily close above 12,310 would be the real sign that the index has broken higher.

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